Ahead of a Cabinet meeting to discuss change in urea subsidy, shares of fertilizer companies witnessed a rally.
Shares of Zuari Agro, RCF, GSFC, and National Fertilisers, among others, were up between 4 and 14 percent intraday on Friday.
The Cabinet meeting will be held to discuss changes to urea subsidy for production in excess of reassessed capacity.
Higher subsidies are likely to be paid to companies who perform based on import parity.
Currently, urea subsidies are as high as 75-80 percent of MRP to a farmer.
At 12:09 hrs, Zuari Agro Chemicals was quoting at Rs 368.00, up Rs 18.20, or 5.20 percent on the BSE. It touched an intraday high of Rs 372.00 and an intraday low of Rs 355.55.
Meanwhile, Rashtriya Chemicals and Fertilisers was quoting at Rs 82.75, up Rs 8.15, or 10.92 percent on the index. It touched a 52-week high of Rs 85.40.
Gujarat State Fertilizers & Chemicals, on the other hand, was quoting at Rs 130.20, up Rs 5.10, or 4.08 percent. It, too, touched a 52-week high of Rs 131.50.
National Fertilizers was quoting at Rs 78.70, up Rs 3.40, or 4.52 percent. It touched a 52-week high of Rs 80.95.
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